Cyprus President Demetris Christofias reiterated to the Prime Minister
of Georgia Vladimir Gurgenidze, Governments firm position in favour of
states sovereignty and their territorial integrity, as defined by the
UN Charter and the principles of the Helsinki Final Act, and for the
peaceful settlement of international disputes through negotiations.

According to an official announcement, President Christofias and Prime
Minister Gurgenidze had a private meeting today in Brussels, on the
sidelines of the EU Council on Georgia, at the invitation of the
Georgias Government.

During the meeting, Gurgenidze briefed Christofias on his countrys
position on the situation in Georgia.

President Christofias, noted that the Russias neighbouring countries
should avoid challenging the Russian Federation. He also pointed out
that the Republic of Cyprus will maintain the friendly relations with
both Georgia and the Russian Federation.

Finally, President Christofias assured Gurgenidze that Cyprus, within
the EU framework, will play a role in the efforts to provide
humanitarian aid to the affected populations.

France expresses hope that the direct talks between the leaders of the
two communities in Cyprus, scheduled on September 3, will allow the
beginning of a process which will lead to the reunification of the
island, Erick Sevalie, spokesman of the France Foreign Ministry, has
said.

Speaking to the Press, Sevalie underlined that the French Republic
fully supports the dialogue, President Christofias has resumed after
his election to the Presidency of the Republic of Cyprus, last
February. We welcome his willingness and his determination, Sevalie
concluded.

Cyprus President Demetris Christofias and Turkish Cypriot leader Mehmet
Ali Talat, will begin on Wednesday direct talks, aiming at a political
settlement of the protracted Cyprus question.

The inflation rate in Cyprus will drop significantly in 2009, below 3%,
Charilaos Stavrakis, Minister of Finance has said. Speaking here today,
Stavrakis noted that this will happen even if the oil prices increase
again and reach the last summers high levels. He also pointed out that
the inflation is expected to reach 4.8-5% by the end of 2008 adding
that its gradual reduction has already begun.

The international oil prices have a significant impact on the inflation
rate, Stavrakis said, and added: Even though, our prediction is that
even if the oil prices reach 145 dollars per barrel, the inflation rate
in Cyprus will significantly reduce, below 3%

In addition, Stavrakis stressed that if the oil prices remain at todays
level, namely between 115-120 dollars a barrel, then we will have a
pleasant surprise and the inflation rate will be approximately 2.5%.

Theresa Villiers, member of UK Parliament, has expressed hope that the
talks between President Demetris Christofias and Turkish Cypriot leader
Mehmet Ali Talat, scheduled on September 3 , will achieve progress
towards a settlement of the Cyprus problem.

In a written statement, Villiers says that there are so many hopes and
expectations vested in these talks, adding that everyone who really
cares about Cyprus wants to see these negotiations succeed and lead to
a just and lasting settlement.

It is easy to be pessimistic about the negotiations since there have
been so many failures in the past but I very much hope that these talks
will make progress towards a settlement which sees all Cypriots,
including Greek Cypriots, Turkish Cypriots, Armenians and Maronites,
living peacefully together in a unified Cyprus with a single
international legal personality, a single citizenship, and single
sovereignty, as she pointed out.